Balance Sheet of Payal, Akeel and Ramesh as at 31st March, 2023 was as follows:
Balance Sheet of Payal, Akeel and Ramesh as at 31st March, 2023 was as follows:
| Liabilities | ₹ | Assets |  | ₹ |
|
Creditors Investments Fluctuation Reserve Workmen Compensation Reserve Profit and Loss A/c Capital A/cs: Payal Akeel Ramesh |
2,00,000 2,000 18,000 3,000 51,000 40,000 40,000 |
Balance at Bank Debtors Less: PDD Stock Machinery Investments Building Goodwill |
30,000 1,600 |
1,60,000 28,400 4,000 29,000 30,000 1,00,000 3,000 |
| Â | 3,54,400 | Â | Â | 3,54,400 |
Ramesh retired on 1st April, 2023 and following adjustments were agreed upon:
(i) Building is to be appreciated by 10%.
(ii) All the Debtors were good.
(iii) Investments be valued 10% less than the book value
(iv) Stock be reduced to 93%.
(v) Goodwill be valued at one year’s purchase of the average profit of the past three years. Profits of the years ended 31st March, 2021 and 31st March, 2022 were ₹ 8,000 and ₹ 7,000 respectively.
(vi) Ramesh shall be paid ₹ 23,440 immediately and the balance in two equal yearly instalments together with interest @ 8% p.a.
(vii) New Ratio of Payal and Akeel would be 2 : 1.
Prepare Revaluation Account, Partner’s Capital Accounts, Ramesh’s Loan Account (till it is paid) and the Balance Sheet as at 1st April, 2023. 
Anurag Pathak Changed status to publish March 3, 2024
